Against the tide: A case of industrial relations transformation in the Indian coal sector

Abstract

AbstractAlthough the scholarly debate on industrial relations (IR) transformation is inclined toward the conclusion that the IR transformation is bound to take place with changes in the surrounding business environment, we observe a few exceptions in each economy. The current study investigates one of such curious IR contexts, that is, the Indian coal sector. We rely on the ‘logic of the action’ framework and the IR transformation measures to assess the sector at an aggregate and micro level. The coal sector in India consists of a mix of both permanent and informal workforce. With respect to the permanent workforce, we analysed the collective bargaining agreements spanned over five decades (1975–2021). For the informal workforce, we analysed the recommendations of the HPC on wages and working conditions, the provisions of relevant legislation, internal circulars of coal companies and important judicial pronouncements. Our analyses revealed vast differences in wages and working conditions between the permanent and informal workforce. Despite a significant decline in the permanent workforce, they could negotiate better terms as the growing size of the informal workforce was yet to form a collective bargaining mechanism for better wages and working conditions. These results are indicative of a paradox which needs to be explored further. Our study advances the thesis of adaptive state capitalism in the coal sector through functional and numerical flexibility despite a politicised multi‐union model in India.